What Would Accreditation Change Mean for Real Estate Investors?

By Darian E. Fernandez | December 4, 2023



Edward Fernandez, president and CEO of 1031 Crowdfunding, lends his thoughts to Kiplinger on what a change in accreditation laws would mean for real estate investors. By democratizing access, enhancing the robustness of the investment environment and encouraging a broader range of projects, these changes would herald a new era for real estate development and investment.

Recent proposed congressional changes to investor accreditation laws promise to leave a long-term mark on the commercial real estate landscape.

Previously, only achievable by having a net income of over $1 million or more than $200,000 in annual net earned income during the last two years, the new proposal from the House of Representatives will allow investors to achieve accreditation status by passing a test that proves their “financial savvy.”

The test, which would be administered by FINRA, would be provided free of charge and would assess the individual’s competency and knowledge of the private market. It would also address topics like various securities both public and private, corporate governance and risks associated with private assets, like limited liquidity and different disclosure rules.

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